Did you know that you could qualify for certain tax deductions related to eldercare expenses? If you help pay for the care of an elderly dependent, then you may be able to deduct some of your expenses on your taxes.
Deductions for Medical Expenses
If you help to pay medical bills that are not covered by your dependent’s insurance, then you could be able to deduct some of these costs from your taxes. You may also be able to deduct costs that you incur while making sure that your home can accommodate the dependent you are caring for, such as installing hand rails or entrance and exit ramps. It is important to note that some improvements may increase the value of your home, so they may only be partially deductible.
Dependent Care Credit
Another tax deduction that you might qualify for is the dependent care credit. If the individual that you care for qualifies as your dependent, lives with you, and cannot physically or mentally care for himself or herself, then you could qualify for the dependent care credit. This credit helps to cover costs associated with your dependent’s daily care so you and your spouse can go to work.
If you want to know more about tax deductions for eldercare expenses, get in touch with the tax help pros at Taxation Solutions, Inc. today!